2023 was yet another strange year, with a global cost of living crisis plaguing the bank balances of many individuals and companies. Yet, despite there being less money in consumer pockets, interest in the mobile device market has stayed steady and strong. Customer priorities might well be evolving, with attitudes to price and sustainability driving purchasing intent, but they are ultimately still eager to own smartphones and other connected devices.
On the industry side, there is also cause for celebration, as technological innovations promise a revolutionized supply chain, and push the boundaries of an improved customer experience. Yet 2023 will surely be most remembered as the year that generative AI was transformed from a niche futurist curiosity to a mainstream technology that companies worldwide are urgently trying to integrate into their business strategies.
Much like how personal computing, the internet and mobile were technological upsets in the past, AI is poised to become the fourth technology inflection point of our generation across all industries. In the coming year it seems certain that a host of AI-powered and assisted innovations will begin to transform the mobile device marketplace, as the smartphone and secondary device industries embrace this burgeoning technology.
#1: Personalization will be key to customer retention
Over the course of the last year, we’ve begun to see an increase in personalization being offered to consumers in product and service bundles. Personalizing a package for the individual consumer, such as offering specific device protection or family bundles, grants them a feeling of agency, boosting customer satisfaction scores, or allows them to engage with services that may otherwise have been too expensive for them to access. It’s a win-win for both consumer and business.
From helping to address the ‘choice overload’ phenomena when picking from an array of similar product care bundles, to allowing consumers to customize service bundles by taking into account their specific circumstances, AI tools are expected to be used to analyze consumer data and assist with smart-personalization. We anticipate that for many companies, this will be a core part of their customer relationship management and optimization strategy in the coming year.
#2: Rather than displacing jobs, AI will be utilized to improve the workplace
With reports such as that published by Goldman Sachs being delivered in 2023, the focus of many headlines in the last year has been the likelihood that AI will upend the workplace by displacing and degrading jobs. The investment firm estimated 300 million jobs could be lost or diminished in the near future, but they also point to how worker displacement has historically been offset by the creation of new jobs and dramatic improvements for the remaining workforce.
We’re also thankfully still a way away from seeing job elimination in the smartphone and circular economy domains. In fact, we predict that in the coming year, companies will instead look to how AI can create a better environment for their existing and future staff, capitalizing on its potential efficiency gains. Rather than thinking about how AI replaces people, we’re seeing companies instead talk about how people work in partnership with AI. Digital adoption and generative AI can handle the mundane and routine while freeing up human resources to handle more complex tasks. New industry terms like Co-botics (collaborative robotics) have emerged, reflecting this trend of pairing humans and machines on tasks.
#3: The role of AI within the circular economy supply chain will be expanded
It is promising to see so many key industry players lead on emissions reductions through 2030 and 2040 net-zero carbon pledges, but despite commitments from telecoms giants to curb emissions generated by their supply chains, the logistics networks of the smartphone and connected device industries are still very energy inefficient. Combine this with the number of devices that are still sent to landfill – The international waste electrical and electronic equipment forum (WEEE) estimates that more than five billion phones globally were thrown away in 2022 alone – and the continued importance of the mobile device circular economy becomes clear.
We also saw consumer intent decline when it comes to the typical smartphone upgrade cycle this year, while interest in refurbished devices as a more affordable and sustainable alternative to trading in their phones for a new model continued to grow. The value of used devices typically decreases by 1% per week prior to resale, so it is critical that the supply chain is as efficient, secure and accurate as possible. AI-powered hardware and software – including robotics – are essential in the coming year to help automate and create consistency for much of the process.
While many of the trends from 2023 will surely continue into the new year, the technological breakthroughs that are exciting thought leaders in many industries globally are sure to upset the status quo in the smartphone and secondary device markets as well. Our view looking to 2024 is one of optimism, and of consumers, employees and businesses working hand-in-hand to see the benefits of the exciting AI-driven future on the horizon.
